This is a rush transcript from "Hannity," July 7, 2010. This copy may not be in its final form and may be updated.

SEAN HANNITY, HOST: Defend your borders and you will be hauled to court. Now that is the message that President Barack Obama is sending border state governors all across America.

After months of slamming Arizona's immigration law, on Tuesday the Obama Justice Department filed a lawsuit challenging the constitutionality of the measure. But for all the talk about this bill leading to widespread racial profiling, you may be surprised to learn that the lawsuit does not mention racial profiling a single time.

Instead Attorney General Eric Holder now alleges that the law usurps the federal government's authority. In a statement he said, quote, "Arizonans are understandably frustrated with illegal immigration and the federal government has the responsibility to comprehensively address those concerns."

But Arizona officials are speaking out. They say the administration isn't doing its job. And that's why they had to take matters into their own hands.

Let's take a look.


GOVERNOR JAN BREWER, R-ARIZ.: I think there's a movement not only afoot here in Arizona but I think there's a movement throughout the United States that people wanting some action from the federal government.

And so we would probably see these types of bills being enacted in other states. We need the federal government to do their job, and if they don't do it, then Arizona will.

JOE ARPAIO, MARICOPA COUNTY SHERIFF: Why isn't the federal government asking us for our help instead of suing - suing law enforcement in the state of Arizona.


HANNITY: It's a great question. And my next guest isn't happy about the lawsuit either. She says the administration's immigration policies are being orchestrated by open border extremists inside the Justice Department. And she is the author of the number one New York Times best seller, "Culture of Corruption," Michelle Malkin is back with us.

Michelle, welcome back.


HANNITY: All right. Well, let's just start with how they characterize the bill. Barack Obama said, you're going to take your kids to an ice cream shop and they're going to ask where your papers are. That was their argument originally. What happened to that argument?

MALKIN: Well, they knew would it crumble in the courts. And so now they are running to the founding fathers. All of a sudden you've got this newborn, newfound adherence of the Constitution citing the supremacy clause as a reason to attack Arizona's immigration enforcement law.

And what they're saying basically is that the federal government ought to have, you know, supreme authority over enforcing immigration law which of course is a joke. They're not doing it, which is the reason for the law in the first place.

But there's a lot of disingenuousness involved here on the part of these legal eagles because they only believe in preemption in certain case. For example, you've got these rogue cities and states all across America, left-wing metropolitan areas that have declared themselves illegal alien sanctuaries and they are defying the federal government, refusing to enforce immigration laws.

Where is Eric Holder to claim supremacy over -


MALKIN: Over that? Nowhere to be found which just shows you just how dishonest these people are.

HANNITY: Well, that was my next point here because if this was about profiling and about discrimination, and remember we - Janet Napolitano hasn't read it. Eric holder hasn't read it. I doubt the president even read it before he first commented on it. And P.J. Crowley didn't read it.

But it shows you in many ways that their comments to the American people were dishonest. Is that right?

MALKIN: Yes, that's right. That's right. They completely abandoned their claims that this would end up in racial profiling. Of course they did that because they wanted to demonize Jan Brewer and all of the people in the Arizona legislature and the voters and residents of that state who have been under siege.

Make no mistake about it, Sean, this lawsuit isn't merely an attack on Arizonans. It's an attack on all law-biding Americans and law-abiding people here who have decided that they've had enough of immigration chaos.

And basically this is their way of trying to deter other cities, states and localities from taking matters into their own hands.

HANNITY: All right. We've got to be clear. As you point out, they are citing and arguing the Constitution supremacy clause and powers the federal government, not Arizona, to set immigration policy here.

But if we break this down here, Arizona has not set up a separate immigration law. When you read the law - it's only 16 1/2 pages. When you read the law, the law is specific: inciting federal law that is not being enforced.

So my question is, where does this end up in the courts? I don't see a court that's going to side with the Justice Department here.

MALKIN: Yes, and that is why the authors of the law, including Kris Kobach who's a candidate for Kansas secretary of state, a former Bush official, a very smart law professor. They scrupulously drafted this law to ensure that it would pass muster in the courts.

And they pointed out many times, and of course unlike the people in the White House, who's criticized this from day one without reading it, they did their homework, the authors of this law, and made sure that it complied with all the existing regulations. It doesn't go any further than existing immigration law now.

But it does point out something that I reported on in my column, which is that you've got this ideological, open borders zealots in the Justice Department who do not care about the rule of law. And the letter of the law.

That's why you've got these renegades like Thomas Perez who's the assistant attorney general and head of the Civil Rights Division who has spent his entire life lobbying for undermining immigration enforcement. He's somebody who supported sanctuary cities, wanted driver's licenses for illegal aliens, in-state tuition for illegal aliens. And guess what? He's a dime a dozen in that dirty DOJ.

HANNITY: All right, let's talk a little bit more - and we're going to get into this in more detail in our next segment of the program here tonight. But I think this is important.

Stephen King - Congressman King raised a good question and it was on human events: Is the Department of Justice playing racial politics? And very specifically, and we'll talk more about this, the new Black Panther Party, they show up in military garb at a polling place on Election Day in 2008, using racial epithets, beating their batons.

It's all caught on videotape here. And at the highest level of the Justice Department they decided not to pursue this case which I can't for the life of me figure out.

So if you put the two cases together, do you think racial politics are being played at the Justice Department?

MALKIN: No question about it. And thank God for Jay Christian Adams, the whistleblower at the Justice Department who was involved in this case from the get-go. I've been reporting on what happened with the new Black Panther Party since November 2, 2008 when they were thug - they were thugs there.

And I think it's of a piece, these two cases, that you have a corrupt-o-crat Justice Department that is defying the will of the people and running roughshod over the justice that it is supposed to protect.

HANNITY: Yes. All right. But let's add one other case to this - because I don't know, and I want your overall thoughts on the attitude of Obama's government in that sense. The government that he has put together. The people that he has put place.

We're now told in this interview by the head of NASA - I always thought NASA was about sending people to the moon and maybe pursuing Mars and Venus, the planet of love, you know. That's what I was thought NASA's mission was.

He says in an interview to Al Jazeera of all places, that the president told him his foremost task was to reach out - to find ways to reach out to the Muslim world and also Muslim nations to help them feel good about their historic contributions to science and math and engineering.

When we put these three issues together - immigration, case with the new Black Panther Party, and foremost mission of the head of NASA - what do you conclude?

MALKIN: What we conclude is that this administration puts identity politics, pandering to America-haters and people who do not believe in the sovereignty of our country, above our own national interests.

And, you know, the NASA thing is so astonishing it is beyond parity, although on my website today at MichelleMalkin.com, I've got readers who have redesigned the NASA logo to incorporate this Muslim pandering.

What is amazing about that case as it is with the other cases that we're talking about and it's good that we're threading them together is, they're not backing down one bit. They are unapologetic about their far-left radicalism and I believe that they are going to pay a price for it come November and in 2012.

HANNITY: So you think there's going to be a price to pay. You think people have paid enough attention to these three issues?

MALKIN: Well, you know what? If it were up to the mainstream media we wouldn't know a thing about it. Thank god for talk radio, your show, Fox News and the blogosphere because otherwise the people would be left in the dark.

HANNITY: All right, Michelle, and for your website, MichelleMalkin.com.

Michelle, thanks for being with us. Appreciate it.

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